UAE Strengthens Global Leadership in Islamic Finance and Halal Industry
The comprehensive plan, unveiled in May, outlines an integrated ecosystem for Islamic finance—including banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and non-banking services—anchored in global standards. This move is backed by modern infrastructure, progressive regulation, and targeted investment in knowledge-based growth.
Islamic banking continues to expand its footprint, with recent data from the Central Bank showing it accounts for 18% of banking assets and nearly 23% of credit. As of February 2025, Islamic banks in the UAE extended AED503.5 billion in total credit, a 16% year-on-year rise. Deposits surged 16.9% to AED595.3 billion.
The Islamic Sukuk sector is also surging. The launch of dirham-denominated Islamic Treasury Sukuk (T-Sukuk) in 2023 marked a milestone. Nasdaq Dubai now hosts over US$95.7 billion in listed Sukuk, placing the UAE among the world's top Sukuk listing centres.
The country ranked fourth globally in Islamic finance markets by total assets in 2023, according to the Islamic Finance Development Indicator.
Alongside finance, the UAE is scaling up its halal sector, aiming to grow exports from AED74 billion to AED315 billion by 2031. Local manufacturers are increasingly tapping into this growing market, driven by rising global demand for halal-certified goods.
Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Group, called the strategy a game-changer for positioning the UAE as a global halal production centre, citing the country's logistics advantages and world-class infrastructure.
News Source: Emirates News Agency
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